In a significant ruling that could impact numerous homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has reaffirmed that possession of a property without an Occupancy Certificate (OC) is not legally valid. The authority emphasized that even if homebuyers are physically residing in such properties, their possession does not hold legal recognition.
This clarification came in response to multiple complaints filed by homebuyers of the LEO Group Housing Complex project (MahaRERA Registration No. P51800008538) against developer Sir George P. Joseph. The complainants sought relief due to the delayed possession and non-issuance of the OC. The project, which was initially scheduled for completion by June 2019, has remained incomplete, with the developer failing to obtain the required certificate.
Key Rulings by MahaRERA:
- Possession Without OC is Illegal: The regulatory body ruled that physical possession of a property does not equate to legal ownership in the absence of an OC, as it violates statutory requirements.
- Delayed Possession Penalty: MahaRERA has granted the complainants the right to claim interest for delayed possession from July 2019 onwards.
- Restrictions on the Developer: The project registration has been put on hold, preventing the developer from advertising, selling, or transferring any flats until further notice. Additionally, the project’s bank account has been frozen.
- Developer Fined: A penalty of ₹50,000 has been imposed on the promoter for non-compliance with RERA regulations.
Implications for Homebuyers
MahaRERA’s decision reinforces that developers must obtain the OC before handing over possession. Homebuyers living in properties without an OC could face legal and financial risks, including lack of access to municipal water, electricity connections, and legal ownership rights.
Buyers are advised to verify project completion certificates and OC status before taking possession to safeguard their rights under the Real Estate (Regulation and Development) Act, 2016.
For affected residents and prospective buyers, MahaRERA has reiterated the importance of strict adherence to real estate laws, ensuring that homebuyers receive legally recognized possession of their homes.
